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Monday, March 24, 2008

Talk You Will Hear Regarding "The Next Great Depression"

Challenge Accounts:

Investing Account Balance: $201.46

Stock / Futures Trading Balance: $684.39
Online Savings Balance: $12.07

Personal Trading Thoughts: Cash. No positions. Short - bearish outlook to sell rallies in stock market, but extremely wary as this market remains very volatile. Looking only for long positions in the Commodity Futures arena.

Personal Investing Thoughts: Cash. Bearish outlook for the market. Expecting, by the time this has played out? For 35% drawdown from highs for this bear market; but who knows, as bottoms are a process, not an event. Personal ideas? Open Swiss Bank Account with $10,000.00 USD, and start diversifying into foreign currencies. 1) Yen 2) Swiss Franc 3) U.S. Dollar 4) Euro and 5) Chinese Hyuan. I'm currently looking into updating the passport.

Ok. Try to browse through YouTube, and get some sort of information regarding the Stock Market, Finances, or the general health of the economy.

You're going to hear talk regarding why we *must* go into a Depression. Why it's inevitable.

For the entire 12 years I've been in this business, I've heard this. The stock market crash of 1996. The stock market crash of 1997. The stock market crash of 1998. The stock market crash of 1999. The stock market crash of 2000. The stock market crash of 2001. Etc, etc. You can ask my wife about them. We've gotten that stuff in emails, in the mail, etc, until she knows ever line of it, and how they sell their stuff.

If we do get a crash out of this? It's only going to be because the broken watch is right twice a day. Not because of any skill on the part of the bears. Those guys missed one of the largest bull runs (and money to be made in it) in human history.

* * *

Investing Account Balance: $201.46
Stock / Futures Trading Balance: $684.39
Online Savings Balance: $12.07

Total Trades and Investments: 3
Largest Inter-trade Drawdown: $86.51
Consecutive Losing Trades (Drawdown): 2
Average Drawdown: $82.56
Average Loss: $82.56
Accuracy Rate: 33%
Average Reward: $179.75
Risk : Reward Ratio: 1 : 2.02

This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 12 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research and tolerance for risk.

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